103/07
Monday 6 August 2007

Licence Condition to Protect the Bush

The Minister for Communications, Information Technology and the Arts, Senator the Hon Helen Coonan said today that the Howard Government will ensure that country mobile phone users are not left high and dry by the closure of the CDMA network.

“I have issued a draft licence condition to Telstra that would require them to keep the CDMA network open until the Next G network provides equivalent or better coverage and services, reflecting the public commitments Telstra has already made itself.

“The Government makes no apologies for putting consumers first when considering the regulation of Australia’s communications industry.”

Senator Coonan wrote to Telstra in mid-June suggesting that they move back the CDMA switch-off date to allow more time for the transition from the current CDMA network to Next G. Telstra refused to reconsider the switch-off date and would proceed with their previously announced switch-off date of 28 January 2008.

As a key part of verifying Telstra’s public commitments, Senator Coonan directed the Australian Communications and Media Authority (ACMA) to undertake independent coverage audits of both the CDMA and Next G networks.

“Telstra has advised that it will not be able to say whether it has delivered equivalent or better coverage until 15 October this year before their planned shut down of the network on 28 January 2008. This is simply not enough time to ensure that their public commitments have been met,” Senator Coonan said.

“ACMA needs 12 weeks to complete the audits and the Government needs time to consider the findings. The Government must act now to protect regional and rural Australians.”

Senator Coonan said that she had heard first hand about the rising level of consumer concern regarding mobile phone coverage.

“I have just spent the last six weeks on the road across Australia and based on the level of frustration in the community, it is clear that this issue needs Telstra’s urgent and genuine attention.

“The Government’s hand has been forced by Telstra’s inaction on consumers’ concerns.”

Senator Coonan said that in order to address the rising level of concern, the Government has established the Next G Customer Support Unit on freecall 1800 883 488 which will be effective from tomorrow.

“This will ensure that consumers are able to report any problems they are experiencing with the switch to Next G.

“Consumers will be able to provide feedback on performance and service issues with the Next G network which will be invaluable in assessing whether and when Telstra has met its public commitments on coverage and service equivalence.”

The Next G Customer Support Group will also perform an independent audit of Telstra’s point-of-sale advice and product availability.

Telstra CEO, Sol Trujillo, was advised of the Government’s decision today and Telstra has been invited to make a written submission on the draft licence condition within 30 days and the final licence condition will be issued following consideration of Telstra’s comments.

ENDS

Media Contact: Katherine Meier 0417 441 141